OIL MARKETERS VOW TO UNDERCUT DANGOTE REFINERY’S PETROL PRICE
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Nigerian oil marketers have announced plans to sell petrol below N1,028/litre, the price set by the Dangote Petroleum Refinery. This move aims to undercut Dangote’s price and that of the Nigerian National Petroleum Company Limited (NNPCL).
_Key Points:_
– _Dangote Refinery Price_: N1,015 – N1,028/litre (depending on quantity purchased)
– _Marketers’ Planned Price_: Below N1,028/litre
– _Landing Cost_: N978.01/litre (as of October 31, 2024)
– _Competitive Pricing_: Marketers seek to undercut Dangote and NNPCL prices
The Major Energies Marketers Association of Nigeria revealed the landing costs of various petroleum products:
– _Petrol_: N978.01/litre
– _Diesel_: N1,069.97/litre
– _Aviation Fuel_: N1,119.67/litre
Dangote Refinery’s reluctance to disclose its pricing strategy has sparked competition among marketers. By importing and selling petrol below Dangote’s price, marketers aim to gain market share and increase sales.
_Implications:_
– _Price War_: Marketers’ move may spark a price war, benefiting consumers.
– _Increased Competition_: Dangote Refinery and NNPCL may need to reassess their pricing strategies.
– _Market Dynamics_: The development could reshape Nigeria’s petroleum market, promoting healthier competition.
